740.00113 European War 1939/10–3044
The Secretary of State to the American Representative on the Advisory Council for Italy (Kirk)
The Secretary of State refers to secret telegrams nos. 624, October 30, 1944, and 685, November 8, 1944,4 from the Representative, in both of which the question of desequestration by Italy of American properties located in Italy is discussed. Telegram no. 624 under reference also states that the Italian Prime Minister has requested the advice of the American authorities as to whether steps will be taken by the United States Government to effect the desequestration of Italian property in the United States. The Department also refers to a despatch no. 535, November 15, 1944,5 from the United States Representative on the Advisory Council for Italy, with which there was transmitted a copy of a proposed Italian decree of desequestration and a copy of a letter referring to the draft decree.
This Government is strongly of the view that property of United States nationals sequestered by Italy should be released from control as speedily as adequate care for the property can be provided, and that, therefore, the proposed draft decree enclosed with despatch no. 535 under reference should be issued as soon as possible. The Department does not wish to comment specifically upon the provisions of the draft decree at this time, but believes that the general effect of the decree is along lines which are satisfactory to this Government. In this connection the question arises as to whether release by the manager appointed by the Ministry of Treasury will be effected as soon as a satisfactory agent can be appointed by the interested United States national or as soon as other satisfactory arrangements can be made by that national. The advice of the Representative on this point is requested.
With respect to the desequestration of Italian assets located in the United States, however, it is believed that such desequestration is not related to the action proposed under the draft decree or similar measures. The attitude of the United States Government with respect to Italian property established or placed in the United States after the signing of the Italian armistice with the Allied Nations is exemplified by this Government’s willingness to release troop pay dollars for the purposes of the Italian Government and by the policies adopted with respect to dollar proceeds of Italian exports and post-liberation remittances. However, policy in the United States has not as yet been definitely formulated on the question of pre-armistice Italian property, [Page 1223] and such property must continue to be immobilized until the decision of this Government upon the question of its disposition. It may be pointed out, for your information, that a number of legal as well as policy problems arise in connection with the disposition of property of nationals of a state which has been at war with the United States and with whom a treaty of peace has not as yet been concluded. These problems are under consideration in the Department and elsewhere in the Government of the United States, but they involve difficulties which must be resolved before a final decision is reached and which are likely to permit of no early answer to the question of ultimate disposition of pre-armistice Italian property.
It should, however, be further pointed out that the policies set forth in the Department’s instruction no. 3 of May 25, 1944,6 will continue to be followed.
The Representative is further authorized, in his discretion, to deliver a note covering the substance of the statements made above in response to the note of October 28, 1944 from the Italian Prime Minister. In any case, unless the proposed draft decree transmitted with despatch no. 535 under reference is already enacted, the Representative should emphasize, either orally or in some more formal manner, in his discretion, the importance which the United States attaches to the prompt release of Italian sequestration controls over the property of United States nationals. The Department is gratified that the Italian Government is apparently already taking the necessary steps for the release of its sequestration controls, in which connection reference is made to the voluntary report of the United States Representative on the Advisory Council for Italy of June 2, 1944,7 but this gratification is somewhat tempered because of the lapse of time since the request in the spring of 1944 that such measures be taken. It may be emphasized in any communications addressed to the Italian Government with respect to this subject that the liberalized policy regarding communications with Italy and the resulting increased opportunity for United States owners to control and provide for their property will underline the necessity for the prompt release of Italian sequestration controls.
- Latter not printed.↩
- Not printed.↩
- Not printed; it concerned (1) a circular of March 29, addressed by the Attorney General to all United States attorneys and marshals, providing for the return of articles, such as radios and cameras, that had been deposited by Italian nationals in compliance with regulations no longer applicable to them; (2) the continuance of the Treasury Department to block Italian funds under Executive Order 8389, subject to the possibility of release under special license; and (3) discontinuance by the Alien Property Custodian of further vesting of the property of nationals of Italy in instances where vesting is proposed simply because of the nationality of the property owner, resulting in diminution of vestings in the fields of business enterprises, real estate and property under judicial supervision, such as estates and trusts (740.00113 EW 1939/1408).↩
- Not found in Department files.↩